US Fed dissenters call for rate hikes to combat sustained inflation

A group of Federal Reserve policymakers dissenting from the central bank's current stance is pushing for interest rate hikes, arguing that further delay risks letting inflation become entrenched in the US economy. The dissenters say recent data shows inflation remaining stubbornly above target.

Their call marks a notable split within the Fed, which has generally favored holding rates steady in recent meetings while assessing incoming economic data. The disagreement underscores the difficulty policymakers face in balancing inflation control against risks to growth and employment.

Markets are watching closely for signs the Fed's broader committee could shift toward the dissenters' position at upcoming meetings, a move that would have ripple effects across global borrowing costs and currency markets, including in Asia where central banks are monitoring US policy closely.